Attorney General's News Release

September 17, 2002

Nixon files consent judgment requiring North Kansas City contest companies to give more facts to players, pay $44,000 to state

Jefferson City, Mo. — Two "pay-to-play" contest companies based in North Kansas City will be required to make significant changes in how they do business, under a stipulated consent judgment filed today in Jackson County Circuit Court by Attorney General Jay Nixon.

The proposed consent judgment, which awaits court approval, also requires Contest America Publishers Inc. and Opportunities Unlimited Publishers Inc. to pay $44,382 to the state of Missouri; pay restitution to consumers who spent large sums on the contests and were misled; maintain liberal refund policies for consumers who do not understand how the contests worked; and not solicit consumers identified as "high-risk" because of their frequent entries.

Missouri was one of nine states working together that brought legal action against the defendants, both of whom do business at 1401 Armour Road Boulevard.

In a civil petition filed simultaneously with the consent judgment, Nixon alleged the mailings from Contest America and Opportunities Unlimited were misleading some consumers to believe that the contests were actually sweepstakes where any entry could win, rather than games of skill. The contests consists of word and math puzzles that become increasingly difficult after the initial rounds; participants are required to pay additional entry fees with each new "tie-breaker" round.

"The initial rounds consist of very simple puzzles that eliminate few contestants, meaning that there are many fee-paying participants to move on through those rounds," Nixon said. "This judgment requires that each round, including the initial rounds, must eliminate at least 15 percent of participants. Potential participants will be shown examples of the degree of difficulty of the puzzles at each round so they can better judge if they should pay to go on in the contest."

In addition to prohibiting the companies from depicting the contests as sweepstakes or games of chance, the judgment also will require the defendants to tell or show consumers:

• Information on the number of rounds involved.
• The date by which a winner will be determined.
• A complete listing of the fees involved.
• An illustrative final round puzzle sample.
• The estimated number of contestants.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818